Impact of Operating and Non-Operating Expenses on Profitability of Air India and Indigo: A Comparative Study
Sayyad Saadiq Ali1, Shaik Abdul Mazeed2, R. Sarveswara Reddy3
1Sayyad Saadiq Ali, Research Scholar, Department of Commerce & Management, Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram, Guntur District, Andhra Pradesh, Pin- 522502, Assistant Professor, Marri Laxman Reddy Institute of Technology and Management, Dundigal Telangana State-500043.
2Shaik Abdul Mazeed, Research Scholar, Yogi Vemana University, YSR Kadapa, Andhra Pradesh, Assistant Professor, MarriLaxman Reddy Institute of Technology & Management, Dundigal, Telangana.
3R. Sarveswara Reddy, Research Scholar, Rayalaseema University, Kurnool, Assistant Professor, Dr.K.V. Subba Reddy School of Business Management, Kurnool, Andhra Pradesh-518218.
Manuscript received on 02 June 2019 | Revised Manuscript received on 10 June 2019 | Manuscript published on 30 June 2019 | PP: 466-471 | Volume-8 Issue-8, June 2019 | Retrieval Number: H6505068819/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: ‘Air India’ – It has been considering as the India’s leading airline company since independence. But sincelast decade everything is going wrong in Air India’s context. Even recently emerged airline companies are capturing market share and reaping profits by facilitating creative products and services by adopting strategies from global leading airline companies. In this article we are going to analyse the impact of operating and non-operating expenses on overall profitability of Air India as a comparative study with IndiGoAirline Company. For the purpose statistical tools like mean, standard deviation and coefficient of variation are used. The results have stated that standard deviation of total revenue expenditure in Air India is lower than in IndiGo airline. Air India is not in a condition to expand its business operations due to huge financial obligations. From ratio analysis point of view, it is clear that all the ratios like ROI, ROE, ROIC and profit margin ratios are too low than in case of IndiGo airline. Due to huge expenses of big organizational management, financial payments and uncontrollable administration expenses Air India has fallen into deep obligation of indebtedness and hence forced for privatisation
Keyword: Keywords: Revenue expenditure, Operating expenses, Non-operating expenses, Return on investment, Return on equity, Operating income.
Scope of the Article: Software Engineering Case Study and Experience Reports.